1044 loss? Form 4797

Forum|Forum|5 years ago
March 15, 2021
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I invested in a corporation that just went bankrupt so my entire investment was lost. I believe I can deduct that loss under Section 1044, but per my research in Turbo Tax it appears that I am to use Form 4797. However, when I complete the 4797 form with a negative balance, the program deletes it. How do I enter this loss?

Best answer by ThomasM125

You should try these entries in TurboTax to enter your loss on section 1044 stock:

Income and expenses
Stocks Mutual Funds, Bonds, Other
Indicate that you didn't get a form 1099-B and enter "One sale at a time"
Enter description, date worthless, date acquired, proceeds as $0, cost
When you see "Select any less common adjust. that apply" choose 3rd. option
Choose "QSBS eligible for ordinary loss deduction" when you see "What Kind of Small Business Stock"
Check the applicable features on the screen that says "Tell Us About the Stock"

Based on your answers in that section, your stock loss will be treated as ordinary and appear on form 4797, Part II.

ThomasM125Answer

Level 15

You should try these entries in TurboTax to enter your loss on section 1044 stock:

Income and expenses
Stocks Mutual Funds, Bonds, Other
Indicate that you didn't get a form 1099-B and enter "One sale at a time"
Enter description, date worthless, date acquired, proceeds as $0, cost
When you see "Select any less common adjust. that apply" choose 3rd. option
Choose "QSBS eligible for ordinary loss deduction" when you see "What Kind of Small Business Stock"
Check the applicable features on the screen that says "Tell Us About the Stock"

Based on your answers in that section, your stock loss will be treated as ordinary and appear on form 4797, Part II.

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